The manufacturing industry had recorded growth during the first quarter of 2018 at 4.50 percent. It was higher than the same period of the previous year at 4.28 percent. The manufacturing sector during the first quarter of this year was still the largest contributor that reached at 20.27 percent of the national economy.
“The growth was supported by increased of production both in the large scale sector as well as small and medium industries (SME). Except of that, there is the increase the exports for non oil and gas commodities,” said Minister of Industry, Airlangga Hartarto, through his statement.
Minister said, during the first quarter of 2018, the highest growth was the machinery and equipment industry that reached at 14.98 percent. This growth was adjusting of the increase of the business of the construction and mining machinery as the result of both industries.
Then, the brilliant result was followed by the food industry which reached a growth rate of up to 13.01 percent. Except of being boosted by the increased of palm oil production, the upcoming momentum of Ramadan was also one of the productivity booster in the food industry.
“With the continuously of improvement of people’s buying power, the industry surely pushed its production value,” said Airlangga. Furthermore, the growth was caused by several factors, such as the increase of purchasing managers index (PMI) and the increase of commodity price.
The Ministry of Industry noted that the capability of manufacturing sectors had above the national GDP, which were transportation equipment industry had grew at 11.30 percent, apparel industry reached at 10.9 percent, basic metal industry reached at 9.94 percent, and also, the pharmaceutical industry (chemical drug product, and traditional medicine) reached at 7.36 percent.
Government asserted that it was determined to boost the growth of the manufacturing industry. It was because of consistently of the processing activities carried the multiple effects for the national economy, such as the increase of the value of domestic raw materials, the using of local manpower, and the foreign income of export.
“We focus on running the downstream industries,” he said. Except of that, The ministry of industry actively attracted the investment and boost export. “The industry is also the largest contributor of taxes and customs,” he added.
Based on data that released by the Investment Coordinating Board (BKPM), investment in the manufacturing sector during the first quarter / 2018 reached at Rp 62, 7 trillion. The realization consisted of the domestic investment at Rp 21.4 trillion and the foreign investment at 3.1 billion US dollars.
The sector of metals, machinery and electronics industries were the largest contributor of investment with the amount of Rp 22.7 trillion. In order to push productivity and competitiveness of the industry today, government conveyed that the strategic was taken by the ministry of industry which was to encourage the competence of human resources (HR) industry through vocational education and training programs.
Government encourage the industry to conduct the research and development activities, and apply the latest technology in order to create innovation. This effort is one of the implementation of 10 national priorities toward the direction of Making Indonesia 4.0 in order to prepare for the fourth generation of the era of industry revolution.
Disclaimer: This article is a summary of news articles obtained from a number of mass media. We are not responsible for the accuracy of data or sources of information presented by the mass media that became the reference.
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